16. For the following project calculate the Net Present Value. The cost of capital is 12% Initial cost $48.000 $10,000 15,000 12,000 18,000 12,000 4. 1231tn
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- If current assets are $100,000 and current liabilities are $42,000, what is the working capital? A. 200 percent B. 50 percent C. 2.0 D. $58,000Compute the NPV of the project below assuming that the cost of capital is 8%: Year 0 1 2 3 FCF -85,000 55,000 55,000 68,0001. A company has determined that a certain project will produce revenue of $14 million 1 year from now. The costs are projected to equal $5 million each 2, 3 and 4 years from now. Given a cost of capital of 10%, the Net Present Value of the project equals:$1.42 million $1.56 million$12.72 million$14.00 million
- X construction is considering two projects to develop. The estimated net cash flow from each project is as follows:YearProject X ($)Project Y ($)1110,00075,000265,000150,0003100,00060,0004115,00055,000535,00060,000Total425,000400,000Each project requires an investment of $ 200,000. The cost of capital is 10%.Require toa) Calculate Net Present Value, Payback period, ARR and Profitability Index.b) Which Project is to be recommended to develop based on NPV, Profitability Index, Payback period and ARR? Suggest4 You are considering the following investment activity. The facts are the following: Required investment 300,000.00 Discount Rate 9% Life of project 7.00 Years Net income for the project Sales 140,000.00 Expenses Material 25,000.00 Labor 35,000.00 Overhead 15,000.00 Total Expenses 75,000.00 Net Income 65,000.00 What is the NPV of this investment? What is the IRR of this investment? Would you fund this project? Show your work below Year 0 1 2 3 4 5 6 7Calculate the following project, at cost of capital of 10%. Years Cash flow (RM) 0 -10,000 1 2,000 2 2,000 3 4,000 4 4,000 5 5,000 i) NPVii) PIiii) Justified should we accept or reject the project?
- If a $300,000 investment has a project profitability index of 0.25, what is the netpresent value of the project?a. $75,000b. $225,000c. $25,000d. $275,000Compute the PI statistic for Project Z if the appropriate cost of capital is 6 percent. Project Z Cash flow: –$3,300 $730 $860 $1,030 $680 $480You have been asked by MPAC Ltd to analyse two projects, Xand Y. Each project costs £1,000,000, and the company’s cost of capital is 10 percent per annum. The expected net cash flows are as follows: Year Project X Project Y 1£600,000 £200,000 2£500,000 £300,000 3£300,000 £400,000 4£100,000 £675,000
- You are considering the following investment activity. The facts are the following: Required investment 300,000.00 Discount Rate 9% Life of project 7.00 Years Net income for the project Sales 140,000.00 Expenses Material 25,000.00 Labor 35,000.00 235000 Overhead 15,000.00 Total Expenses 75,000.00 Net Income 65,000.00 What is the NPV of this investment? 2,714,193.00 What is the IRR of this investment? 11646% Would you fund this project? yes Show your work below Year 0 -300,000.00 1 65,000.00 2 65,000.00 3 65,000.00 4 65,000.00 5 65,000.00 6 65,000.00 7 65,000.00Judson's cost of capital is 12%, what is the project's NPV? Year Cash Flow in $ 0 ($1000) 1 400 2 400 3 600Project investment cost 5million, the IRR is 20%, cost of capital 16%, company capital struture 50% debt , 50% equity. Expected net income 7287500. what is the dividend pay out ratio